Nuclear Power Update for The Society of American Military Engineers

1. Nuclear Power UpdateforThe Society of American Military Engineers September 15, 2010

2. 45 inch steel-reinforced concrete 1/4 inch steel liner 36 inch concrete shielding 8 inch steel reactor vessel nuclear fuel assemblies Nuclear Power Facilities-Safety is Key Multiple Layers of Safety

3. Industry Activities • Licensing risk is a key issue for the industry to move forward with actual plant orders • Previously separate construction and operating licenses were required • No certainty provided by this process • Many physical changes were required prior to receipt of operating licenses • Costs increased due to schedule delays and rework required • Industry has adopted new process which results in combined construction and operating license

4. Pre-Construction Early Site Permit Construction Verification Combined License Review, Hearing, and Decision Verification of Regulations with ITAAC Reactor Operation Decision Optional Pre-Application Review Standard Design Certification • Licensing decisions finalized before major construction begins • Inspections to verify construction • Limited work may be authorized before license is issued New page 23 New Licensing Process provides regulatory certainty

5. Industry Activities • Industry has adopted several standard designs • Westinghouse AP 1000 (design certified 1/2006) • General Electric ESBWR • General Electric ABWR (design certified 5/1997) • Areva US EPR • Mitsubishi US APWR

6. New Technology - Advanced Reactor Characteristics • Safety • Use of passive safety systems • Gravity flow and natural circulation designs for cooling • Design • Reduced number of components and bulk commodities • Eliminate pumps and valves previously needed • Use digital controls and fiber optic cables • Procurement • Standardization of components based on NRC approved design

7. Fewer Components Reduce Plant Costs 45% Less Seismic Building Volume 70% Less Cable 50% Fewer Valves 35% Fewer Pumps 80% Less Pipe Confidential and Proprietary

8. New Technology - Advanced Reactor Characteristics • Construction • Extensive use of modular construction improves quality and reduces on-site construction requirements • Digital controls reduce size and complexity of systems • Shorter construction schedule • Operation and Maintenance • Use of proven systems and components • Man-machine interface advancements • Fewer systems to maintain and test reduces staff

9. Smaller and Simpler than Current Plants Sizewell B AP1000 74147A

10. Economics • What makes Nuclear attractive? • Fuel volatility, both gas and coal, is a major concern • Fuel transport and supplies are showing signs of capacity constraints • Environmental compliance measures are increasing cost of coal base load resources • Regulation of carbon dioxide (CO2) emissions is gaining traction • New licensing process expected to allow cost control • New design units are smaller and less costly to construct

11. Costs of Competing Fuels

12. Plant Vogtle Reactor Containment Bldg. Cooling Towers Turbine Bldg. Electrical Switchyard

13. Plant Vogtle Expansion

14. PSC Certification received 3-17-09 Schedule Overview 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 ESP Preparation ESP and LWA Review 08-15-06 ESP and LWA Received 8-26-09 PSCCertificationProcess (complete) EPC Contract Signed 4-8-08 COLA Preparation NRC COL Review COLA Submitted COL Received 3-31-08 Fall 2011 Pre-Construction LWA Activities Construction S/U COD U3 4-1-2016 Commercial operation date is April 2016 & 2017 for Units 3&4 S/U As of 6/30/2010

15. Permit and License Activities • Early Site Permit • Submitted to NRC in 2006 • Issued by NRC August 2009 • First to include Limited Work Authority • Combined License Application • COL Application Filed in March 2008 • Application Under Review at NRC • Anticipate License in Fall 2011 • Vogtle Named Reference Plant

16. Vogtle 3 & 4 Construction Phases Pre Construction Pre Certification COL LWA • Safety Related Construction • Surveying • Subsurface Exploration • Environmental Protection • Back Fill • Waterproof Membrane • Rebar • Basemat Concrete • Site-clearing • Demolition & Relocation of existing facilities • Construction of training & storage buildings • Excavation of the nuclear island Onsite Workers 2011 2012 2009 2010 PSC Certification LWA COL

17. Construction Activities –Module Assembly Building

18. Construction Activities Steam Generator Head Circulating Water Pipe Reactor Vessel Head

19. Construction Activities –Foundation Excavation and Backfill

20. Chinese Construction AP1000 Sanmen U1 Nuclear Island

21. Questions